Australian business must accept that the Trade Practices Act 1974 applies equally to them, regardless of their size or power in the market, ACCC Chairman, Mr Graeme Samuel, said today.
Responding to criticisms from Woolworths' Chief Executive Officer, Mr Roger Corbett, following the recent Safeway bread price fixing and misuse of market power Court decision, Mr Samuel said the ACCC would apply the Act without fear or favour.
"Price fixing and misuse of market power are not 'a moot point' – they can have very serious detriment on consumers (as the bread case did) and also on the economy at large.
"The vast majority of business conducts itself properly, obeying the law yet competing in fair, vigorous way. Those which do not will face the consequences.
"I reject the notion that businesses should be able to 'sit down and talk' behind closed doors about serious breaches of the Act and do deals.
"I also reject the claim that the Safeway action was a 'waste of taxpayers money'. It affected consumers and small business and was a serious breach. It was right that it was heard in the Courts. Woolworths has the option of further pursuing the matter in the High Court, if it so chooses.
"The ACCC did not spend anywhere near the $8 million figure mentioned by Mr Corbett. The ACCC will not be diverted from enforcing the Act in the interests of consumers by threats by big business that Court proceedings will be a costly exercise.
"I note that another respondent in the matter, George Weston Foods Limited (trading as Tip Top Bakeries) admitted price fixing and resale price maintenance. The court imposed a penalty of $1.25 million in 1997.
"The ACCC is here to do a job – deal with the protection of consumer rights and consumer interests.
"My message to any business thinking of breaching the Act is simple – watch out!
"The ACCC is, and will continue to be, a strong enforcer of the law, without fear or favour".